Malaysia's natural rubber (NR) production decreased by 5.2% to 35,979 tonnes in August 2024, down from 37,960 tonnes in July 2024, according to the Statistics Department Malaysia. Year on year, however, NR production showed a significant increase of 14.9% compared to 31,309 tonnes in August 2023.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin noted that smallholders were the primary contributors to the August production, accounting for 88.1%, while estates contributed 11.9%.

The total stock of NR fell by 13.7% in August, reaching 127,876 tonnes, down from 148,106 tonnes in July 2024. Rubber processor factories were responsible for 88.0 per cent of the stocks, followed by rubber consumer factories at 11.8% and rubber estates at 0.2%.

In terms of exports, Malaysia's NR amounted to 57,482 tonnes in August, representing a 19.2% increase from 48,204 tonnes in July. This rise was attributed to NR-based products, including gloves, tyres, tubes, and rubber thread. China remained the main destination for NR exports, accounting for 25.8%, followed by the United Arab Emirates (20.1%), Germany (10.1%), the United States (9.6%), and India (8.3%).

Gloves were the leading rubber-based export, valued at RM1.6 billion in August, marking a 14.6 per cent increase from RM1.4 billion in July 2024.

According to the August 2024 Malaysia Rubber Board Digest, the Kuala Lumpur rubber market experienced mixed conditions with upward price movements. The average monthly price of concentrated latex fell by 2.0 per cent to 634.07 sen per kilogramme in August, down from 647.23 sen/kg in the previous month. Similarly, scrap rubber prices decreased by 1.0 per cent to 664.26 sen/kg, compared to 670.80 sen/kg in July 2024.

Market sentiment was supported by gains in regional rubber futures amid concerns over NR supply disruptions due to inclement weather forecasts in major producing countries. Additionally, optimism regarding potential rate cuts in the US and hopes for more stimulus from China contributed to the positive market outlook.